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Download Risk Management Exam Dumps
NEW QUESTION 23
M is updating the risk register for KRW, a listed company. KRW is a large multinational corporation operation. Which THREE of the following statements are correct?
- A. The register should include details of who is responsible for dealing with each risk.
- B. Interdependencies between risks should be excluded.
- C. Probabilities of risks occurring should be included if possible
- D. Monetary value of risks should be allocated if possible.
- E. The register should include all the risks to which KRW is exposed.
Answer: A,C,E
NEW QUESTION 24
A small but rapidly expanding company has recently opened several branches in locations far away from the Head Office. All of the branches are relatively small with no one branch accounting for more than 5% of turnover. Management has decided that the company is not yet large enough to install an Internal Audit function but is, nonetheless, concerned about maintaining adequate control and monitoring at the branches whilst allowing Branch Managers the opportunity to react to local circumstances as appropriate.
Which of the following measures would assist Head Office management in maintaining appropriate monitoring and control at the branches?
- A. Arranging visits by senior management to each branch periodically.
- B. Dealing with all Human Resource, recruitment, and similar issues directly from Head Office.
- C. Restricting the autonomy of individual Branch Managers to purely routine matters and instructing them to refer everything else to Head Office.
- D. Instituting the use of a formalised budgetary control system at head office for all branches.
- E. Establishing an open communication policy for employees at branches to allow them to contact Head Office on any matter that concerns them.
Answer: A,D,E
NEW QUESTION 25
Rio owns an architects business which employs 12 skilled architects and four administrative staff.
The Office Manager has just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible.
What are the limitations of an internal control system in Rio's business?
- A. Employees could ignore the internal controls.
- B. Internal controls may slow down the speed with which the architects can respond to enquiries.
- C. Internal controls are only suitable for large businesses.
- D. Internal controls will usually mean hiring more staff.
- E. If Rio does not support the internal control system then the controls may not be adhered to.
Answer: A,B,E
NEW QUESTION 26
V buys vegetables and fruit from three farms located in a different part of V's country and sells them to large supermarket chains.
A recent newspaper magazine had an article on these farms showing that the farms employ illegal immigrants whose status was used by the factory's owners to force them to work for low wages and in unpleasant conditions. They are forced to live in small overcrowded caravans with no running water. They are also given meals which are cold and poor quality. These farms are located in a developed country with strong labour laws.
Classify each of the following statements as true or false.
Answer:
Explanation:
NEW QUESTION 27
Why do businesses take risks?
Select the TWO correct answers.
- A. Risk taking allows businesses to save time by not having to find out all the facts before they embark on new projects.
- B. Risk taking allows for multiple random outcomes, some of which may be worth chasing.
- C. Risk taking can assist businesses to gain an advantage on their competitors.
- D. Risk taking provides businesses with opportunities to make better returns.
- E. Risk taking can give the impression that senior management roles are very dynamic.
Answer: C,D
NEW QUESTION 28
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